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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: djane who wrote (7330)	9/11/1999 10:37:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

From the short side, 4/88 Merrill positive report on I* Top>Business & Finance>Investments>Sectors>Services>Communications Services>GSTRF (Globalstar Telecommun.) Merrill Lynch research by: nyksin2000 12106 of 12128 April 22, 1998, Thomas W Watts from Merrill Lynch said in research comment #11211229 about Iridium... Iridium (IRIDF; $63 1/8; D-2-2-9 Dec98E d$9.00-d$7.00; 99E d$9.00-d$7.00 - At our Satellite Communications CEO Conference, IRIDF highlighted its technical and marketing plans for its commercial services. The company is expected to complete two more launches by month end- Deta on April 26th and Long March on April 30. - At that time, the system's entire constellation should be in place and its focus will shift to marketing. - Many investors perceive IRIDF as a phone service for Int'l traveler. Today, IRIDF made clear its is to go after every segment including int'l travelers, domestic users and industrial applications. - On the domestic front, the company expects its prices to be highly competitive with any of the other satellite telephone solutions and to cost only about 30% more than cellular service. We expect the company to directly compete with Globalstar for the domestic market in each country. - Remain cautious about early subscriber revenues but evidence suggests high demand for IRIDF services. - While our rating reflects our Accumulate rating with regard to valuation, if the company achieves its plans - our $82 value of Iridium shares in 1999 is based on a 12x EBITDA multiple in 2002 which indicates a $203 stock price at that time, and discounting the $203 back to 1999 at a 30% equity discount rate - would be achievable. I wish I had kept all his comments on IRIDF. This is word for word. Call your friends at the Bull and ask for a copy of this gem. I can not recall if this brilliance came out before or after a debt issue that Merrill help underwrite, but the same Thomas W Watts now writes that GSTRF is going to $42 in 12-18 months. How are they going to pay back the $2.4 billion they've borrowed so far? Their first quarterly $53 million receivable payment due to QCOM is due Jan 1, 2000, and interest only payments annually on their existing obligations is running at $190 million. IRIDF had 25,000 subscribers and Globalstar expects 1 million subscribers next year with $650 million in revenue. Currently 300,000 phones are ordered, and they will ship 10,000 a month going forward...15 months...150,000 more phones...does that add up to 1 million phones for their subscribers, or do subscribers have to wait a year before the phones get made? If they have to wait, does this hurt revenues? Watts noted that IRIDF's problem was poor execution, not lack of demand. Does he think 25,000 subscribers was great demand? Wall Street strike again. Have a good weekend longs and shorts. Posted: 9/10/1999 9:37 pm EDT as a reply to: Msg 12068 by fivephones